Hughes

The last three months of 2009 proved to be treacherous for U.S.-based oilfield service operators, with Baker Hughes Inc.’s (BHI) profits falling 81%, Halliburton’s off 48% and Schlumberger Ltd.’s down 31%, but a recovery in pricing and services is likely to pick up later this year, executives said.

Oilfield operator Baker Hughes Inc. (BHI) said Tuesday North American business climbed 9% sequentially in 4Q2009 after producers went back to work to drill more horizontal natural gas wells in U.S. and Canadian unconventional shale plays, as well as increased offshore drilling in the Gulf of Mexico (GOM) and the Permian and Williston basins.

Oilfield operator Baker Hughes Inc. (BHI) said Tuesday North American business climbed 9% sequentially in 4Q2009 after producers went back to work to drill more horizontal natural gas wells in U.S. and Canadian unconventional shale plays, as well as increased offshore drilling in the Gulf of Mexico (GOM) and the Permian and Williston basins.

The domestic natural gas rig count as of Friday had slipped to its lowest level in more than seven years, according to a report by Baker Hughes Inc. (BHI).

Low natural gas prices and the depressed global economy continued to pressure U.S. natural gas producers to rein in operations, according to a recent report from Baker Hughes, which showed that the number of rigs actively searching for gas within the United States during the week ending April 17 dropped by 30 to 760, a level of activity not seen in more than six years.

Low natural gas prices and the depressed global economy continued to pressure U.S. natural gas producers to rein in operations, according to a recent report from Baker Hughes, which showed that the number of rigs actively searching for gas within the United States during the week ending April 17 dropped by 30 to 760, a level of activity not seen in more than six years.

In a sign of things to come, the number of rigs actively exploring for natural gas and oil in the United States dropped by 51 last week to 1,941, according to Baker Hughes Inc. The rigs being laid down are in some of the biggest gas-producing areas: Texas dropped 23 rigs, Louisiana, 13; New Mexico, 12; and Oklahoma lost six.

Baker Hughes Inc. warned Friday that the significant drop-off in Canadian drilling this year compared with a year ago will hurt its quarterly earnings.

Baker Hughes Inc. (BHI) warned Friday that the significant drop-off in Canadian drilling this year compared with a year ago will hurt its quarterly earnings.